In a surprise move, former Toshiba-EMI President Masaaki Saito has been appointed president/CEO of Tokyo-based label Victor Entertainment.

Incumbent VE President Yuichi Kato and Chairman Teruo Saegusa will leave their posts, but will remain as board directors without the right to represent the company. Saito’s appointment took effect Dec. 1.

Saito headed Toshiba-EMI (now EMI Music Japan) from 1997 until 2005 and has since operated Tokyo-based entertainment agency M-site. He has his work cut out for him at VE, which has suffered three consecutive net annual losses.

Saito tells McClure's Asia Music News that it’s too early to say what his plans for VE are: “I will naturally exert sincere efforts towards fulfilling my role and responsibilities of this great challenge with the support and encouragement of the dedicated staff of Victor as well as colleagues in our music industry."

Comments one industry source: “What they (VE) need is dramatic action to restructure the business,” citing rumors that VE parent company JVC Kenwood Holdings may buy the Columbia Entertainment and Teichiku labels and combine them into a single entity with VE.

Victor, Japan’s second-oldest record label, had a 4.7% share of Japan’s recorded-music market in calendar 2008, according to SoundScan Japan.

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